EX-99.1 3 ex99_1-100402.txt MATERIAL CHANGE REPORT EXHIBIT 1 MATERIAL CHANGE REPORT ---------------------- TO: British Columbia Securities Commission Alberta Securities Commission Saskatchewan Securities Commission Ontario Securities Commission Quebec Securities Commission Nova Scotia Securities Commission Newfoundland Securities Commission ITEM 1 REPORTING ISSUER ---------------- Barrick Gold Corporation Royal Bank Plaza, South Tower Suite 2700, P.O. Box 119 200 Bay Street, Toronto, Ontario M5J 2J3 ITEM 2 DATE OF MATERIAL CHANGE ----------------------- September 26, 2002 ITEM 3 PRESS RELEASE ------------- A press release was issued on September 26, 2002 at Toronto, Ontario. A copy of the press release is attached hereto. ITEM 4 SUMMARY OF MATERIAL CHANGE -------------------------- On September 26, 2002, Barrick Gold Corporation ("Barrick") announced that it expects 2002 earnings per share in the 33-35 cent range (excluding non-hedge related adjustments) compared to earlier guidance for earnings at the lower end of the 42-47 cent per share range, based in both cases on a $315 spot gold price. For the year, Barrick expects production to be on target for 5.7 million ounces, while cash costs are expected to average $178 per ounce, compared to $172 per ounce previously estimated. In addition to higher cash costs, Barrick expects marginally lower gold sales and higher depreciation expense than previously forecast. See the press release attached hereto. ITEM 5 FULL DESCRIPTION OF MATERIAL CHANGE ----------------------------------- See the press release attached hereto. -2- ITEM 6 CONFIDENTIAL REPORT ------------------- Not applicable. ITEM 7 OMITTED INFORMATION ------------------- No significant facts have been omitted from this report. ITEM 8 SENIOR OFFICER -------------- Richard Young, Vice President, Investor Relations of Barrick (416-307-7431) or Sybil Veenman, Associate General Counsel and Secretary of Barrick (416-307-7470) may be contacted for further information regarding the foregoing. The foregoing accurately describes the material change referred to herein. Dated at Toronto, Ontario this 4th day of October, 2002. BARRICK GOLD CORPORATION by /s/ Sybil Veenman --------------------------------------- Sybil Veenman Associate General Counsel and Secretary [BARRICK LOGO] PRESS RELEASE - TORONTO, SEPTEMBER 26, 2002 For Immediate Release All amounts in United States dollars Barrick Revises 2002 Outlook Full Year Earnings per Share Expected to be in $0.33-$0.35 range; Q3 in $0.05-$0.06 range Barrick Gold Corporation (ABX: NYSE/TSE) announced today that it expects 2002 earnings per share in the 33-35 cent range (excluding non-hedge related adjustments)(1) compared to earlier guidance for earnings at the lower end of the 42-47 cent per share range, based in both cases on a $315 spot gold price. "Certain operations experienced lower than anticipated grades and recovery rates, resulting in lower production and higher costs," said John Carrington, Vice Chairman and Chief Operating Officer. "While our third quarter has been disappointing, we expect our fourth quarter results to improve as we mine better grades at several operations." Overall, for the year, production is on target for 5.7 million ounces, while cash costs are expected to average $178 per ounce, compared to $172 per ounce previously estimated. Cash costs are expected to average approximately $180 per ounce in the third quarter. Despite the higher costs, the Company expects to generate $370 million in free cash flow this year. "We've been working flat out to fix the mine sequencing and processing issues at several of our mines this year," said Mr. Carrington. "We thought we had turned the corner with a strong June, but it's clear now it's taking a little longer than we would have liked to resolve the issues. They are short-term, and we are resolving them." In addition to higher cash costs, the Company expects marginally lower gold sales and higher depreciation expense than previously forecast. The Company expects third quarter earnings to be in the 5-6 cent range, before rising to the 10-11 cent range in the fourth quarter, based on spot gold prices averaging $315 per ounce. "In spite of this quarter's results, the fact remains that our operating mines are a solid base for our growth plans," said Randall Oliphant, President and Chief Executive Officer. The Company's existing operations are expected to produce an average of 5.5 million ounces a year at $175 cash costs through 2006. Beyond that, under the growth plan announced earlier this month, Barrick expects to develop four new mines, which are anticipated to add 2 million ounces of production at lower costs than its existing operations. In addition, the Company has announced plans to bring its forward sales position down to 12 million ounces, or 15% of current reserves - a one-third reduction from present levels - by yearend 2003. In line with that plan, the Company expects to reduce its forward sales position to 16.9 million ounces from 17.9 million ounces, and its variable price sales and call option contract position from 3.1 million ounces to 2.2 million ounces, by the end of the third quarter this year. Barrick is a leading international gold producer with the industry's only A-rated balance sheet, a portfolio of long-life, low-cost operations on four continents and proven and probable reserves of 82.3 million ounces of gold. Barrick's shares are traded under the ticker symbol ABX on the Toronto, New York, London and Swiss Stock Exchanges and the Paris Bourse. CONFERENCE CALL NOTICE -------- 1 Non-hedge related adjustments were a gain of $10 million, or $0.02 per share, (net of tax effects) for the six months ended June 30, 2002. BARRICK GOLD CORPORATION PRESS RELEASE Barrick Senior Management will be holding a Conference call: Thursday September 26, 2002 at 8:30 A.M., EDT North American callers dial: 888-391-0105 Overseas callers dial: 415-537-1854 The Conference Call will be available for replay until October 3rd by calling 800-558-5253, reservation #20933178 for North America and 416-626-4100, reservation #20932961 for overseas. A live webcast of the Conference Call will be accessible on Barrick's website at www.barrick.com INVESTOR CONTACT: MEDIA CONTACT: Richard Young Vincent Borg Vice President, Vice President, Investor Relations Corporate Communications Tel: (416) 307-7431 Tel: (416) 307-7477 Email: ryoung@barrick.com Email: vborg@barrick.com Certain statements included herein, including those regarding production, costs and earnings constitute "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Barrick or of the gold mining industry to be materially different from future results, performance or achievements expressed or implied by those forward looking statements. These risks, uncertainties and other factors include, but are not limited to, changes in the worldwide price of gold or certain other commodities and currencies and the risks involved in the exploration, development and mining business. These factors are discussed in greater detail in Barrick's most recent Annual Information Form and Management's Discussion and Analysis of Financial and Operating Results" on file with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities. BARRICK GOLD CORPORATION 2 PRESS RELEASE Production and Cost Summary
2002 Production (attributable ounces - 2002 Total Cash (000'S) Costs (US$/oz) --------------------------------------------------------- New Previous New Previous Forecast Forecast(1) Forecast Forecast(1) -------------------------------------------------------- -------------------------- North America Betze-Post 1,390 1,387 $ 228 $ 221 Meikle 650 677 198 186 --------------------------------------------------------- -------------------------- Goldstrike Property Total 2,040 2,064 219 210 Eskay Creek 355 378 42 22 Round Mountain 380 366 190 200 Hemlo 270 290 227 207 Holt-McDermott 85 91 174 155 --------------------------------------------------------- -------------------------- 3,130 3,189 195 185 --------------------------------------------------------- -------------------------- South America Pierina 885 845 78 78 Australia Plutonic 320 310 185 178 Darlot 140 142 172 166 Lawlers 110 112 187 181 --------------------------------------------------------- -------------------------- Yilgarn District Total 570 564 181 176 Kalgoorlie 365 367 226 218 --------------------------------------------------------- -------------------------- 935 931 199 193 --------------------------------------------------------- -------------------------- Africa Bulyanhulu 350 362 199 191 Other/Mines closing in 2002 365 365 188 188 --------------------------------------------------------- -------------------------- Total 5,665 5,692 $ 178 $ 172 --------------------------------------------------------- --------------------------
1 Mid-year forecast BARRICK GOLD CORPORATION 3 PRESS RELEASE